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Omnia Holdings Limited - Unaudited Results For The Six Months Ended 30 September 2016

Release Date: 29/11/2016 07:05:00      Code(s): OMN     
OMNIA HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1967/003680/06
Share code OMN
ISIN ZAE000005153 
("Omnia" or "the Group")

UNAUDITED RESULTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2016


FINANCIAL FEATURES
-  Revenue increased by 2.5% to R7.9bn
-  Profit for the period down 22.1% to R258m
-  Operating margin down by 1.1% to 5.8%
-  Headline earnings per share down 24.9% to 371 cents
-  Debt:equity ratio improves from 22.8% to 20.2%
-  Dividend declaration of 160 cents per share


SUMMARY CONSOLIDATED INCOME STATEMENT 
for the six months ended 30 September 2016 
                                                       Unaudited           Unaudited                               Audited
                                                        6 months            6 months                             12 months
Rm                                                   30 Sep 2016         30 Sep 2015                  %        31 Mar 2016
Revenue                                                    7 947               7 754                  3             16 774 
Cost of sales                                             (6 428)             (6 048)                 6            (13 369)
Gross profit                                               1 519               1 706                (11)             3 405 
Distribution expenses                                       (771)               (757)                 2             (1 400)
Administrative expenses                                     (408)               (403)                 1               (802)
Other operating expenses                                      (8)                (71)               (89)               (93)
Other operating income                                       125                  61                105                 79 
Operating profit                                             457                 536                (15)             1 189 
Finance expenses                                            (119)                (97)                23               (239)
Finance income                                                22                  17                 29                 60 
Share of profit of investments accounted 
for using the equity method                                    1                   1                  -                  2 
Profit before taxation                                       361                 457                (21)             1 012 
Income tax expense                                          (103)               (126)               (18)              (310)
Profit for the period                                        258                 331                (22)               702 
                                                                                                                         
Attributable to:                                                                                                          
Owners of Omnia Holdings Limited                             255                 333                (23)               701 
Non-controlling interest                                       3                  (2)              (250)                 1 
Profit for the period                                        258                 331                (22)               702 
Earnings per share from profit attributable 
to owners of Omnia Holdings Limited (cents)                                                                               
Basic earnings per share                                     380                 494                (23)             1 042 
Diluted earnings per share                                   357                 465                (23)               988 
Headline earnings per share                                  371                 494                (25)             1 033 
Diluted headline earnings per share                          349                 465                (25)               979 

SUMMARY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
for the six months ended 30 September 2016 
                                                       Unaudited           Unaudited                               Audited
                                                        6 months            6 months                             12 months
Rm                                                   30 Sep 2016         30 Sep 2015                  %        31 Mar 2016
Profit for the period                                        258                 331                (22)               702 
Other comprehensive income, net of tax                                                                                     
Currency translation difference                             (276)                374               (174)               682 
Total comprehensive income for the period                    (18)                705               (103)             1 384 
Total comprehensive income attributable to:                                                                              
Owners of Omnia Holdings Limited                             (21)                707               (103)             1 383 
Non-controlling interest                                       3                  (2)              (250)                 1 
                                                             (18)                705               (103)             1 384 

SUMMARY CONSOLIDATED CASH FLOW STATEMENT 
for the six months ended 30 September 2016 
                                                                           Unaudited          Unaudited            Audited
                                                                            6 months           6 months          12 months
Rm                                                                       30 Sep 2016        30 Sep 2015        31 Mar 2016
Operating profit                                                                 457                536              1 189 
Depreciation and amortisation                                                    198                181                373 
Adjustment for non-cash items                                                    (99)                98                484 
(Utilised by)/generated from working capital                                  (1 666)              (949)               258 
Cash generated from operations                                                (1 110)              (134)             2 304 
Interest paid                                                                   (119)               (97)              (263)
Interest received                                                                 22                 17                 60 
Taxation paid                                                                   (131)              (128)              (245)
Net cash (outflow)/inflow from operating activities                           (1 338)              (342)             1 856 
Cash outflow from investing activities                                          (271)              (239)              (469)
Cash outflow from financing activities                                          (155)              (283)              (432)
Net (decrease)/increase in cash and cash equivalents                          (1 764)              (864)               955 
Net cash and cash equivalents at beginning of period                             310               (699)              (699)
Exchange rate movements on cash and cash equivalents                             (18)                36                 54 
Net cash and cash equivalents at end of period                                (1 472)            (1 527)               310 

SUMMARY CONSOLIDATED BALANCE SHEET 
as at 30 September 2016 
                                                                           Unaudited          Unaudited            Audited
                                                                            6 months           6 months          12 months
Rm                                                                       30 Sep 2016        30 Sep 2015        31 Mar 2016
Assets                                                                                                                   
Non-current assets                                                             4 722              4 614              4 701 
Property, plant and equipment                                                  4 041              3 975              4 060 
Intangible assets                                                                579                535                543 
Trade receivables and other non-current assets                                   102                104                 98 
Current assets                                                                 8 925              9 082              7 677 
Inventories                                                                    4 172              5 073              3 850 
Trade receivables and other current assets                                     4 164              3 644              3 255 
Cash and cash equivalents                                                        589                365                572 
                                                                                                                          
Total assets                                                                  13 647             13 696             12 378 
Equity                                                                                                                    
Capital and reserves attributable to the owners of 
Omnia Holdings Limited                                                         7 538              7 111              7 672 
Stated capital (including treasury shares)                                     1 379              1 380              1 379 
Other reserves                                                                 1 521              1 408              1 787 
Retained earnings                                                              4 638              4 323              4 506 
Non-controlling interest                                                          (7)               (13)               (10)
Total equity                                                                   7 531              7 098              7 662 
Liabilities                                                                                                                
Non-current liabilities                                                          609                558                621 
Deferred income tax liabilities                                                  563                488                565 
Trade and other payables                                                          19                 37                 19 
Debt                                                                              27                 33                 37 
Current liabilities                                                            5 507              6 040              4 095 
Trade payables and other current liabilities                                   3 446              4 148              3 833 
Bank overdrafts                                                                2 061              1 892                262 
                                                                                                                         
Total liabilities                                                              6 116              6 598              4 716 
Total equity and liabilities                                                  13 647             13 696             12 378 
Net debt/(cash)                                                                1 522              1 620               (228)
Net working capital                                                            4 956              4 751              3 456 
Net asset value per share (Rand)                                                 112                106                114 
Capital expenditure                                                                                                         
Depreciation                                                                     178                163                333 
Amortisation                                                                      20                 18                 40 
Incurred                                                                         281                239                494 
Authorised and committed                                                         142                116                293 
Authorised but not contracted for                                                472                290                 68 
 
SEGMENTAL ANALYSIS 
for the year ended 30 September 2016 
                                                           Unaudited 6 months                        Audited 12 months
                                                     Operating                     Operating                     Operating 
                                        Revenue*        profit        Revenue*        profit        Revenue*        profit 
                                         30 Sep         30 Sep         30 Sep         30 Sep         31 Mar         31 Mar 
Rm                                         2016           2016           2015           2015           2016           2016 
Agriculture RSA                           1 817             49          2 060            141          4 650            452 
Agriculture Trading                         808            (35)           650            (11)         1 632             (1)
Agriculture other                           981             88            795             29          1 936             43 
Total Agriculture                         3 606            102          3 505            159          8 218            494 
Mining RSA                                  913            108          1 001            157          1 875            253 
Mining other                              1 540            173          1 244            149          2 676            273 
Total Mining                              2 453            281          2 245            306          4 551            526 
Chemicals RSA                             1 619             55          1 811             69          3 822            179 
Chemicals other                             269             19            193              2            183            (10)
Total Chemicals                           1 888             74          2 004             71          4 005            169 
Total                                     7 947            457          7 754            536         16 774          1 189 
*Revenue, net of inter-segmental sales 

SUMMARY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
for the six months ended 30 September 2016 
                                                                                                       Non-
                                                      Stated           Other        Retained    controlling
Rm                                                   capital*       reserves        earnings       interest          Total 
At 31 March 2015 (audited)                             1 430           1 028           4 195            (11)         6 642 
Recognised income and expenses:                  
Profit for the period                                                                    333             (2)           331 
Currency translation difference                                          374                                           374 
Transactions with shareholders:                                                                                            
Ordinary dividends paid                                                                 (205)                         (205)
Treasury shares purchased                                (50)                                                          (50)
Share-based payment - value of 
services provided                                                          6                                             6 
At 30 September 2015 (unaudited)                       1 380           1 408           4 323            (13)         7 098 
Recognised income and expenses:                                                                                          
Profit for the period                                                                    368              3            371 
Currency translation difference                                          308                                           308 
Change in functional currency of 
subsidiary                                                                67             (66)                            1 
Transactions with shareholders:  
Ordinary dividends paid                                                                 (119)                         (119)
Treasury shares purchased                                 (1)                                                           (1)
Share-based payment - value of 
services provided                                                          4                                             4 
At 31 March 2016 (audited)                             1 379           1 787           4 506            (10)         7 662 
Recognised income and expenses:                                                                                          
Profit for the period                                                                    255              3            258 
Currency translation difference                                         (276)                                         (276)
Transactions with shareholders:                                                                                            
Ordinary dividends paid                                                                 (123)                         (123)
Share-based payment - value of 
services provided                                                         10                                            10 
At 30 September 2016 (unaudited)                       1 379           1 521           4 638             (7)         7 531 
*Including Treasury shares 

RECONCILIATION OF HEADLINE EARNINGS 
for the six months ended 30 September 2016 
                                                                           Unaudited          Unaudited            Audited
                                                                            6 months           6 months          12 months
Rm                                                                       30 Sep 2016        30 Sep 2015        31 Mar 2016
Profit for the period attributable to owners of 
Omnia Holdings Limited                                                           255                333                701 
Adjusted for profit on disposal of fixed 
assets/intangible assets                                                          (6)                 -                 (6)
Headline earnings                                                                249                333                695 

OTHER RESERVES 
as at 30 September 2016 
                                                                           Unaudited          Unaudited            Audited
                                                                            6 months           6 months          12 months
Rm                                                                       30 Sep 2016        30 Sep 2015        31 Mar 2016
2016 
Share-based payment reserve                                                      121                107                111 
Foreign currency translation reserve                                           1 379              1 280              1 655 
Gain on treasury shares sold                                                      18                 18                 18 
Net discount arising on acquisition of shares of 
subsidiaries                                                                       3                  3                  3 
                                                                               1 521              1 408              1 787 

ADDITIONAL INFORMATION 
for the six months ended 30 September 2016 
                                                                           Unaudited          Unaudited            Audited
                                                                            6 months           6 months          12 months
000's                                                                    30 Sep 2016        30 Sep 2015        31 Mar 2016
Weighted average number of shares in issue                                    67 173             67 381             67 277 
Weighted average number of diluted shares in issue                            71 397             71 665             70 976 
Number of shares in issue (excluding Treasury shares)                         67 178             67 173             67 173


NOTES
Basis of preparation
This interim report has been prepared in accordance with the framework concepts and the measurement and recognition requirements 
of International Financial Reporting Standards ("IFRS"), the SAICA Financial Reporting Guides as issued by the Accounting 
Practices Committee and Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, presentation 
and disclosures as required by IAS 34 Interim Financial Reporting, the JSE Listings Requirements and the requirements of the 
Companies Act of South Africa. The preparation of this interim report was supervised by the Group finance director, 
WG Koonin CA(SA).

The financial statements have been prepared using accounting policies that comply with IFRS and which are consistent with those 
applied in the preparation of the financial statements for the year ended 31 March 2016, unless otherwise stated.

The interim results have neither been reviewed nor audited by the Group?s auditors.

COMMENTARY
Introduction 
Omnia is a diversified provider of specialised chemicals products and services used in the agriculture, mining and chemical 
sectors. Omnia?s corporate office is based in Johannesburg, South Africa and its main production facility in Sasolburg, some 
70 kilometers south of Johannesburg. The Group has a physical presence in 23 countries and its operations extend into 18 countries 
in Africa, including South Africa with focused operations also in Australasia, Brazil and China. Omnia?s client base extends 
across southern and West Africa and to other regions such as Europe, South America and South East Asia. Omnia differentiates 
itself from other commodity chemical providers by adding value at every stage of the supply and service chain through 
technological innovation and by deploying the company?s intellectual capital. The sustainability of the business model is based on 
and strengthened by the Group?s targeted backward integration through installing technologically advanced plants to manufacture 
core materials such as nitric acid and explosives emulsions. In addition to securing sources of supply, this has also enabled 
Omnia to improve operational efficiencies throughout the product development and production chain. Omnia provides customised, 
knowledge-based solutions through its Agriculture, Mining and Chemicals divisions. The Group?s proven business model makes Omnia a 
market leader in the distribution of industrial chemicals. Omnia continues to grow and prosper, offering extraordinary value to 
the Group?s customers by tailoring solutions to their business needs through product and service innovation, with the expert 
application thereof.

Macro environment 
The global economy remained volatile in the first half of the financial year, with the Brexit vote in the UK being concluded and 
the uncertainty associated with the run up to the US elections in November. The OPEC producing countries that reached agreement in 
September to cut production with little to no positive impact on oil prices. 

The changing landscape of the political situation in South Africa was characterised by several key events aimed directly at 
the incumbent president and corruption. The prospect of a downgrade of the foreign denominated South African government bonds 
weighed on the outlook for the country for most of 2016.

The South African rand staged a strong comeback against all major currencies during the first half of the financial year including the 
US dollar which closed at R13.72 on 30 September 2016 (R14.72: 31 March 2016). The average rate for the six month period to 
30 September 2016 weakened by 4.9% from R13.84 in the prior period to R14.51 in the current period.

Global commodity prices have also improved significantly over the six months to 30 September 2016, with coal up 45%, gold up 9%, 
platinum up 8%, palladium up 28% and copper up 2%. This bodes well for our Mining division.

The strong El Nino effect that dominated weather patterns last year has dissipated, reaching a neutral position with the 
possibility of a La Nina weather pattern forming. The US National Oceanic and Atmospheric Administration Climate Prediction Centre 
lowered the probability of a La Nina to  55-60% in August, from 75% in June. La Nina conditions are generally associated with 
above average rainfall in Southern Africa. At this stage, local weather forecasts predict good rains through to March which covers 
the remainder of the planting season and is positive for the second half of the financial year for the Agriculture division.

The South African manufacturing sector remains slow, which compounds a challenging trading environment for the Chemicals division. 
The volatility in oil prices and exchange rates continues to impact on the day to day decision making processes for customers and 
suppliers which translates into margin pressure for the Chemicals division.

FINANCIAL REVIEW
Income Statement 
Group revenue rose by 2.5% to R7 947 million (2015: R7 754 million) on the back of mixed results from the three divisions, with 
modest growth in volume in the Agriculture and Mining division, offset by lower volumes and higher average prices in the Chemicals 
division.

Gross profit decreased by 11.0% to R1 519 million (2015: R1 706 million) and gross profit percentage was lower at 19.1% of revenue 
(2015: 22.0%) due to lower gross margins in the Agriculture and Mining division, offset marginally by the higher gross margin in 
the Chemicals division.

Administrative expenses increased marginally by 1.2% to R408 million (2015: R403 million) and was well controlled during the 
period. 

Distribution expenses increased by 1.8% to R771 million (2015: R757 million), which is in line with the percentage increase in revenue. 

Other operating expenses of R8 million (2015: R71 million), includes R12 million (2015: R53 million losses) in foreign exchange 
gains, largely driven by the stronger rand:US dollar exchange rate and volatility of the local currencies of various African 
countries in which we operate. The strategy to manage and hedge foreign currency exposures remains appropriate and will continue 
during this period of volatility. Amortisation of intangible assets, at R20 million (2015: R18 million), increased marginally.

Other operating income increased by 104.9% to R125 million (2015: R61 million) as a result of a portion of the insurance claim 
amounting to R57 million for the machinery breakdown at the Nitric Acid 2 complex at the Sasolburg factory been accounted for during 
the period under review, with the balance to be finalised before financial year end. The Chemicals division concluded the sale of the 
Springs property for a profit of R5 million.

Operating profit decreased by 14.7% to R457 million (2015: R536 million), due to the reduction in the Agriculture and Mining 
divisions performance period-on-period. Overall, the operating margin for the six month period reduced from 6.9% to 5.8%. Whereas 
the Chemicals division?s operating margin increased to 3.9% (2015: 3.5%) as a continued result of the improved product mix and 
margin focus, the Mining division?s operating margin was lower at 11.5% (2015: 13.6%) due to ongoing margin pressure through the 
extended downturn of the commodity cycle and higher initial operating costs at the Zambia copper belt mine that recently started using 
the BME products. The Agriculture division?s operating margin decreased to 2.8% (2015: 4.5%) due to a number of factors in the six 
month period including the breakdown of the main air compressor at the Nitric Acid 2 complex, performance issues at the granulation 
plant for a limited period, losses in the Agriculture trading division primarily due to the final close out of the stock position in 
Australia and the final stages of the drought in South Africa. In terms of the breakdown, this resulted in the plant being down for 
86 days resulting in lower throughput volumes and higher operating costs which have been offset in part by the insurance claim which is 
anticipated to be finalised before financial year end. 

Net finance expenses increased by R17 million to R97 million (2015: R80 million) due to the higher cost of hedging the US dollar equity 
position of R48 million (2015: R38 million) and increased cost of borrowing due to increases in the South African interest rates 
period-on-period. 

Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) was lower at  R655 million (2015: R717 million), with the 
reduction attributable to the operating profit decreasing by R79 million and partially due to depreciation and amortisation 
charges being higher at R198 million (2015: R181 million) with the commissioning of the Dryden emulsion plant in mid-2015 
resulting in an increase in the charge period-on-period.

Taxation decreased by 18.3%, or R23 million, to R103 million (2015: R126 million) due to the lower levels of profitability. The 
effective tax rate at the half year was marginally higher period-on-period at 28.5% (2015: 27.6%) with the percentage increase due 
to a combination of the losses made by separate legal entities in various countries that could not be offset against profits made 
elsewhere in the Group, the mix of profits, varying tax rates and the year-on-year changes to the tax formulas in the various 
countries in which Omnia operates. 

Profit after tax decreased by 22.1%, or R73 million, from R331 million in the previous corresponding period to R258 million in the 
current period.

Total comprehensive income was lower at a loss of R18 million (2015: R705 million profit), due to the foreign currency translation 
differences of R276 million (negative) in the current financial period (2015: R374 million positive), as a result of the 6.8% 
decrease in the rand:US dollar exchange rate to R13.72 at period end (R14.72: 31 March 2016). The majority of the foreign currency 
translation reserve relates to the revaluation of the US dollar denominated equity in the offshore balance sheet.

Headline earnings per share of R3.71 (2015: R4.94) was down 24.9% year-on-year.

Balance sheet
Total assets decreased marginally by 0.4%, or R49 million, from R13 696 million in the previous corresponding period to 
R13 647 million in the current period primarily due to the net movement of lower inventories offset by higher receivables and cash 
on hand.

Inventory decreased by 17.8%, or R901 million, from R5 073 million in the previous corresponding period to R4 172 million, 
primarily due to a decrease of R991 million in the Agriculture division. This decrease is attributable to the planned reduction 
in inventory year-on-year and the lower levels of production in the current period due to the 86 day breakdown of the Nitric Acid 
2 complex. Inventory in the Mining division increased by R78 million due to the establishment at new sites and variation due to 
increased levels of mining activity. The Chemicals division increased marginally by R12 million.

Trade receivable and other current assets increased by 14.3%, or R520 million, from R3 644 million in the previous corresponding 
period to R4 164 million in the current period, due to increased sales and aging of certain receivables reflecting a tighter 
economic environment. Strict credit control procedures and debtor insurance assists in managing this exposure on an ongoing basis.

Trade payables and other current liabilities decreased by 16.9%, or R702 million, from R4 148 million in the previous 
corresponding period to R3 446 million, as a result of the slow down of Agriculture raw material purchased due to the Nitric Acid 
2 complex breakdown. Total net working capital increased period-on-period by 4.3% or R205 million, from R4 751 million to 
R4 956 million, represented mostly by the decrease in inventories and trade and other payables, offset by the increase in trade 
and other receivables. 

Equity increased by 6.1% or R433 million, from R7 098 million in the previous corresponding period to R7 531 million in the 
current period. The net increase in equity was due to an increase in retained earnings of R557 million, foreign currency 
translation reserves of R99 million, other reserves and movements of R19 million, offset by R242 million in the 2016 year-end dividend 
payments. 

Cash flow Statement
Cash utilised by operating activities of R1 338 million (2015: R342 million) was R996 million higher than the previous six month 
period mainly due to the increase of R717 million in net working capital utilised. Cash outflow from investing activities of 
R271 million (2015: R239 million) increased by R32 million due to higher interest rates. After taking into account the 
R155 million (2015: R283 million) cash outflow from financing activities, which included a dividend payment of R123 million 
(2015: R205 million), the negative cash and cash equivalents position at the end of the six month period was lower by R55 million 
at R1 472 million (2015: R1 527 million).

Net debt at the end of the six month period was R98 million lower at R1 522 million  (2015: R1 620 million) and the net 
debt: equity ratio improved by 2.6% to 20.2% (2015: 22.8%).

DIVISIONAL REVIEW
Agriculture
Omnia?s Agriculture division comprises of Omnia Fertilizer and Omnia Specialities and is the market leader in its field in South 
Africa and southern Africa. The division produces and trades in granular, liquid and speciality fertilizers for a broad customer 
base of farmers, co-operatives and wholesalers throughout South Africa, southern and East Africa and to select markets in 
Australasia, Brazil, Europe and Mauritius.

The Agriculture division?s competitive edge lies in Nutriology(R), or what Omnia calls the "science of growing". The science of 
growing is Omnia?s business philosophy and involves more than just selling fertilizer to farmers ? it is about optimising yield 
and crop quality to maximise returns while reducing farming and environmental risk. Achieving this, entails becoming intricately 
involved in the producers? businesses to better understand their objectives and targets. Nutriology(R) also includes cutting-edge 
research and development that results in the development of new products, services and farming practices. The Omnia Nutriology(R) 
brand is highly regarded in the regional market and strongly supports management?s vision of creating wealth through knowledge.

Revenue increased by 2.9% to R3 606 million (2015: R3 505 million) due to higher volumes across the business. Sales volumes in the 
lower margin wholesale business increased period-on-period. New business development in the Western Cape has been encouraging and 
farmers across South Africa continue to remain positive leading into the summer planting season. The recent increase in rainfall 
activity across the country is encouraging. Operating profit decreased by 35.8% to R102 million (2015: R159 million) due to a 
combination of lower margins, increased expenses mostly attributable to the breakdown at the Nitric Acid 2 complex and the 
additional losses in the Agriculture Trading segment. Excluding the loss from the Agriculture Trading segment of R35 million, the 
pro-forma operating profit increased from R102 million to R137 million (2015: R159 million) and together, excluding the impact of 
the breakdown of the Nitric Acid 2 complex, the total pro-forma operating profit would increase to R171 million 
(2015: R159 million). On this basis the pro-forma operating profit margin would increase from 2.8% to 4.7%. During the period 
under review, the average ammonia:urea ratio remained at unfavourable levels of approximately 1.50 that was in line with the 
long-term average of the past 3-5 years of approximately between 1.40 and 1.60. However towards period end and subsequent thereto, 
the ratio has fallen dramatically to levels of less than 1.00. Should the ratio remain at these favourable levels, it will have 
minimal impact on the current year margins due to the advanced timing to purchase raw materials based on the current year 
production schedule, however, will be very favourable for the following financial year.

The Agriculture Trading segment margins were negatively impacted due to declining commodity prices which resulted in stock 
position losses in Australia and to a limited extent in Malawi, resulting in a loss for the period under review of R35 million 
(2015: R11 million). Additional provisions have been made against this position to ensure that it is adequately provided for, with 
the Australia position fully closed out and provided for at period end.

Mining
The Mining division services the mining industry through BME and Protea Mining Chemicals.

BME operates throughout Africa with a strong presence in South Africa, southern and West Africa. BME is a market leader in bulk 
emulsion and blended bulk explosives formulations for the opencast mining industry; it produces electronic delay detonators and 
shocktube initiating systems; it has its own range of explosive boosters, and it manufactures packaged explosives for underground 
mining and specialised surface blasting operations. BME adds value to its products through its world-class blasting consultancy 
service. Omnia?s industry experts, experienced mining engineers and geologists advise and support customers in the planning and 
execution of blasting operations. This is achieved using BME?s unique and proprietary BlastMap(TM) software solution in 
combination with the accuracy of the AXXIS(r) electronic delay detonators that is used to control the electronic delay detonators 
in the blasting process.

Protea Mining Chemicals provides a suite of value-added services to complement a wide range of chemicals and reagents supplied for 
use by the processing plants on mines in South Africa and Africa. This includes Protea Process(R), a comprehensive service that 
covers the design of equipment, logistics and on-site management and make up of chemicals and reagents.

Revenue increased by 9.3% to R2 453 million (2015: R2 245 million) due to volume increases. The commodity cycle has begun to show 
signs of improvement resulting in additional contracts and volumes being secured in the current period. Following a series of 
technical upgrades, the improvement in the performance of the electronic detonators has been positive, resulting in improved 
levels of product performance and customer satisfaction. The installation of the new automated production facility for non-
electric detonators has significantly improved the quality and performance of these units and has enabled BME to secure further 
sales volumes based on reliability and performance. The higher initial operating costs on a large scale Zambia copper contract 
also impacted the operating profit in the first half and are expected to normalise going forward. The overall margin at 11.5% 
(2015: 13.6%) remains under pressure due to the competitive nature of the industry through the downturn of the commodity cycle, 
overall, the Mining division?s operating profit decreased by 8.2% to R281 million (2015: R306 million) with the outlook remaining 
positive.

Chemicals
The Chemicals division?s main business, Protea Chemicals, is a long-established and well-known manufacturer and distributor of 
specialty, functional and effect chemicals and polymers. It has a significant presence in every sector of the broader chemicals 
distribution market throughout South Africa, southern and East Africa. Protea Chemicals represents many leading domestic and 
international chemical producers, providing cost-effective and efficient distribution channels for Protea Chemicals? products in 
Africa. Protea Chemicals continues to be rated as one of the largest chemical distributors in Africa by the respected industry 
journal, ICIS Chemical Business. Protea Chemicals also manufactures and distributes chemicals for the treatment of water to render 
it potable, a function mostly undertaken through municipalities. 

Revenue decreased by 5.8% to R1 888 million (2015: R2 004 million) on the back of lower volumes, partially offset by increase in 
unit selling prices. The operating margin improved to 3.9% (2015: 3.5%) due to competitive pricing achieved compared to the prior 
corresponding period with overheads decreasing slightly. Operating profits increased marginally to R74 million 
(2015: R71 million).

PROSPECTS
The Group experienced a very challenging first half of the year with the extended effects of the drought, the 86 day breakdown at 
Nitric Acid 2 complex and the additional stock losses in Australia impacting negatively on the Agriculture division, the Mining 
division continued to weather strong headwinds in the commodity sector and the Chemicals division faced stagnant growth and pricing 
volatility exacerbated by the movements in the oil price and exchange rates. Going forward, all divisions are well placed to 
deliver an improved performance in the second half. The Agriculture division will move into the traditional summer planting season 
with the drought having receded, better rains forecast for the next few months and increased throughput and overhead recovery 
anticipated at the Sasolburg factory. The Mining division continues to improve its product performance and service levels which 
assists current and new clients in achieving higher levels of operational performance using the various products and bedding down 
of the new business model for the Chemicals division presents some interesting opportunities. 

The volatility in the rand continues to be difficult to predict and plan for and management remains conservative in its planning 
processes. Balance sheet, working capital management and capital expenditure remain key focus areas. Uncertainty on government 
policy and economic outlook for South Africa weighs heavily on both the business and customers. Recent events suggest that the 
outlook for a resolution on the political and economic deadlock that has plagued South Africa for several years is more 
encouraging. 

Work continues on a number of potential acquisition opportunities to expand the business. Good progress has been made on the 
implementation of the new Microsoft IT platform and ERP systems as part of this multi-year multi-phase project. Planning for the 
new Nitro-phosphate plant is nearing completion with stage 1 of the civil works underway. Based on the updated cost estimates, the 
total capital cost for the Nitro-phosphate project is in the order of approximately R750 million. 

DIVIDENDS
The Omnia board of directors have declared an interim gross cash dividend of 160 cents per ordinary share (2015: 180 cents per 
ordinary share) payable out of income in respect of the period ended 30 September 2016. The number of ordinary shares in issue at 
the date of this declaration is 68 293 352 (including 1 115 790 treasury shares held by the Group). The gross dividend is subject 
to local dividends tax of 15% for those shareholders to which local dividends tax is applicable. The resultant net dividend amount 
is 136 cents per share for shareholders subject to local dividends tax and 160 cents per share for those shareholders not subject 
to local dividends tax. The company?s tax reference number is 9400087715.

The salient dates for the interim dividend are as follows:
Last day to trade cum dividend                  Tuesday, 17 January 2017 
Shares trade ex-dividend                        Wednesday, 18 January 2017
Record date                                     Friday, 20 January 2017
Payment date                                    Monday, 23 January 2017

Share certificates may not be dematerialised or materialised between Wednesday 18 January 2017 and Friday, 20 January 2017, both 
dates inclusive.

CHANGES TO THE OMNIA BOARD OF DIRECTORS DURING THE PERIOD
Prof Stephanus Loubser retired as an independent non-executive director with effect from 1 December 2016.

NJ Crosse              RB Humphris                   WG Koonin 
Chairman               Group managing director       Group finance director 

29 November 2016

Directors: 
RC Bowen (British)
FD Butler
NJ Crosse (Chairman)
WG Koonin* (Group finance director) 
R Havenstein
HH Hickey
RB Humphris* (Group managing director)
Prof SS Loubser
Dr WT Marais
TNM Eboka
HP Marais (alternate)
SW Mncwango
D Naidoo 

*Executive directors

Registered Office:
2nd Floor
Omnia House
Epsom Downs Office Park
13 Sloane Street
Epsom Downs
Bryanston
2021

PO Box 69888
Bryanston
2021

Telephone: 
(011) 709 8888

Transfer secretaries: 
Link Market Services South Africa (Proprietary) Limited
13th Floor
Rennie House
19 Ameshoff Street
Braamfontein

Sponsor: 
Merchantec Capital
2nd Floor
North Block
Hyde Park Office Tower 
corner 6th Road and Jan Smuts Avenue
Hyde Park
2196

www.omnia.co.za


Date: 29/11/2016 07:05:00 Supplied by www.sharenet.co.za                     
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